Blackboard Show Timer Question Completion Status: Q Fantasy Inc. and Kids Wheel, both hypothetical toy companies, initiated a three-year interest rate swap contract on January 20th, 2000. Under the terms of the swap contract Fantasy Inc is agreed to pay Kids Wheel an interest of 8% per annum on a notional principle of $600 million, and in return Kids Wheel agrees to pay a six-month LIBOR rate on the same principal. In addition, the payments are exchanged semi-annually, and the 8% is quoted with semiannual compounding. First two columns of the following table show the LIBOR rate quotes over the life of the swap contract. Using all the given information, complete Columns 3-5 of the table and fill all the blanks. Please note that your answer must be ONE DECIMAL place. Kids Wheel Cash Flows' Schedule (in millions) CF Received CF Paid Net CF Dates 6- month LIBOR (%) 7.0 Jan 20, 2000 7.2 June 20, 2000 7.6 Jan 20, 2001 7.7 June 20, 2001 8.0 Jan 20, 2002 8.1 June 20, 2002 8.0 Jan 20, 2003 Blackboard Show Timer Question Completion Status: Q Fantasy Inc. and Kids Wheel, both hypothetical toy companies, initiated a three-year interest rate swap contract on January 20th, 2000. Under the terms of the swap contract Fantasy Inc is agreed to pay Kids Wheel an interest of 8% per annum on a notional principle of $600 million, and in return Kids Wheel agrees to pay a six-month LIBOR rate on the same principal. In addition, the payments are exchanged semi-annually, and the 8% is quoted with semiannual compounding. First two columns of the following table show the LIBOR rate quotes over the life of the swap contract. Using all the given information, complete Columns 3-5 of the table and fill all the blanks. Please note that your answer must be ONE DECIMAL place. Kids Wheel Cash Flows' Schedule (in millions) CF Received CF Paid Net CF Dates 6- month LIBOR (%) 7.0 Jan 20, 2000 7.2 June 20, 2000 7.6 Jan 20, 2001 7.7 June 20, 2001 8.0 Jan 20, 2002 8.1 June 20, 2002 8.0 Jan 20, 2003